Does General Liability Protect Your Employees from Injuries

General liability insurance is essential to protecting your business from unexpected risks. It safeguards against various third-party claims, including bodily injury and property damage. However, many business owners question whether it extends to employee injuries. Understanding General Liability for Employee Injuries insurance coverage and limitations can help you make informed decisions about securing your business and employees.

What Does General Liability Insurance Cover?

General liability insurance focuses on protecting businesses from third-party claims, such as:

• Bodily Injury: Covers medical expenses and legal fees if a non-employee is injured on your premises or due to business operations.
• Property Damage: Protects against damages caused to a third party's property during business activities.
• Personal and Advertising Injury: Includes claims of defamation, slander, or libel related to your business.

For instance, general liability insurance covers associated costs if a customer slips and falls in your store or a contractor accidentally damages a client's property. However, this type of insurance does not provide coverage for injuries sustained by employees.

Why General Liability Insurance Doesn't Cover Employee Injuries

Employee injuries are explicitly excluded from general liability policies. These incidents fall under workers' compensation insurance, a separate and crucial policy for businesses with employees. Here's why:

Workers' Compensation Coverage:

Explicitly designed for workplace injuries or illnesses, workers' compensation handles:

• Medical expenses for injured employees.
• Lost wages during their recovery period.
• Rehabilitation costs to help them return to work.

Legal and Financial Risk:

Without workers' compensation, employers are directly responsible for the costs of workplace injuries, which can be substantial. For example, workers' compensation covers the costs if an employee suffers an injury while operating heavy machinery. Without it, the business could face significant out-of-pocket expenses and potential lawsuits.

Do You Need Both General Liability and Workers' Compensation?

Having both policies is essential for comprehensive coverage. Here's why:

Third-Party Claims vs. Employee Protection:

General liability covers risks to customers and other third parties, while workers' compensation focuses on employees' workplace injuries or illnesses.

Legal Compliance:

In most states, workers' compensation insurance is mandatory if you have employees. Non-compliance can result in severe penalties, lawsuits, or business shutdowns.

Employee Trust:

Workers' compensation demonstrates your commitment to employee safety and financial security.

Steps to Protect Your Business and Employees

To ensure your business has the right coverage:

Evaluate Risks:

• Identify potential workplace hazards.
• Assess industry-specific risks that may lead to injuries.

Secure Both Policies:

• General liability for customer and third-party claims.
• Workers' compensation for employee injuries and illnesses.

Consult an Expert:

Speak with a trusted insurance provider to understand your needs and options.

Secure Your Rights with Us

General liability insurance is vital for protecting against third-party risks, but it does not cover employee injuries. Workers' compensation is the required policy for workplace incidents involving employees. Together, these policies create a comprehensive safety net for your business.

At Amistad Insurance Services, we provide expert advice and personalized insurance solutions. Contact us today or call us at (941) 822-0404 to ensure your business is prepared for any situation.

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